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CIRCULAR No

CIRCULAR No. 60/2002/TT-BTC OF JULY 10, 2002 GUIDING THE FINANCIAL MANAGEMENT OF HUMANITARIAN MEDICAL EXAMINATION AND TREATMENT ESTABLISHMENTS UNDER VIETNAM RED CROSS

Pursuant to the Government�s Decree No.73/1999/ND-CP of August 19, 1999 on the policy of socialization of activities in the fields of education, health, culture and sports;

The Finance Ministry hereby guides the financial management mechanism applicable to the system of humanitarian medical examination and treatment establishments under Vietnam Red Cross as follows:

A. GENERAL PROVISIONS

1. Subject to this Circular are general hospitals, specialized hospitals, general and consultation rooms, maternity homes, health service establishments and traditional medicine and pharmacy establishments, which are set up and managed by the Red Cross at different levels (hereinafter called humanitarian medical examination and treatment establishments under the Red Cross).

2. Humanitarian medical examination and treatment establishments under the Red Cross operate for humanitarian and non-profit purposes. Their financial sources are created mainly on the basis of financial supports and voluntary contributions from organizations and individuals at home and abroad.

3. The financial activities of humanitarian medical examination and treatment establishments shall comply with the principle of self-financing and cost accounting and depend on the supporting capabilities (if any) of the Red Cross of different levels.

4. Humanitarian medical examination and treatment establishments under the Red Cross must comply with the State�s current professional and technical regulations, and relevant law provisions.

5. Subjects entitled to free-of-charge medical examination and treatment: poor people, lonely aged people who have no one to rely on, homeless orphans, disabled children, war victims, families being the social policy beneficiaries, ethnic minority people in high-mountain, deep-lying and far-flung areas and other subjects patronized by organizations at home and abroad.

6. Subjects of medical examination and treatment with the collection of charges: people who voluntarily request medical examination and treatment and health insurance card holders recommended by the health insurance agency.

B. SPECIFIC PROVISIONS

I. Revenue sources of humanitarian medical examination and treatment establishments:

- Financial supports in cash or kind, provided by organizations and individuals at home and abroad.

- Supports of the Red Cross at different levels (if any).

- Supports of the State budgets at different levels in a number of specific cases as prescribed by law.

- Revenues from health insurance paid by health insurance agency as prescribed.

- Revenues from medical examination and treatment services at people�s requests. The collection levels shall comply with the principle of fully calculating medical examination and treatment costs. Particularly for the costs of medicaments (excluding medicaments from aid sources), the collection shall be based on the principle of the buying prices plus the costs of medicament preservation, transportation and distribution, without interests thereon.

- Other revenues prescribed by law.

- Self-procured capital of medical examination and treatment establishments.

II. Contents of expenditures of humanitarian medical examination and treatment establishments:

1. Regular expenditures:

- The expenditure on salaries, wages, allowances and bonuses according to the State regime prescribed for the health service; and the State-prescribed contributions such as: social insurance and health insurance premiums, trade union fees;

- The expenditure on administration and logistics in service of medical examination and treatment work: costs of electricity and water supply, environmental sanitation, fuel, stationery, information and communication, propagation, working trips, seminars, conferences and training courses... The spending levels shall comply with the State�s current regulations applicable to agencies, administrative and non-business units.

- The expenditure for professional operations:

+ The direct expenditure for patients made under the physicians� prescriptions.

+ The expenditure on scientific research related to medical examination and treatment work.

+ The expenditure on training and fostering courses to raise the professional qualifications of humanitarian medical examination and treatment establishments� personnel.

- The expenditure on regular maintenance and repair of fixed assets.

- Other expenditures: costs of reception of aid goods, medicaments and aid goods transportation, storage, warehousing, management and distribution, and office rents (if any)...

2. Irregular expenditures:

- The expenditure on anti-epidemic campaigns (if any).

- The expenditure on overhaul and procurement of fixed assets.

- The expenditure on investment in and development of material foundations from fixed asset depreciation sources (if any) for medical examination and treatment activities.

- The expenditure on capital construction (if any).

III. Financial management mechanism applicable to humanitarian medical examination and treatment establishments:

1. Management of aid medicament, supplies and medical equipment sources:

- Providing medical examination and treatment as well as medicaments free-of-charge to the right subjects defined by the donors and subjects prescribed in this Circular. Strictly prohibiting the sale of medicaments, supplies and medical equipment from humanitarian aid sources.

- Opening books to separately monitor the situation of warehousing, ex-warehousing and stock of aid medicaments and goods under the State�s current regulations.

- In cases where the aid medicaments, supplies and medical equipment are not in line with the treatment function assigned to the establishments, the Red Cross at different levels shall set up a council (comprising representatives of the Red Cross, Finance and Pricing agency of the same level, provincial/municipal Health Service or medical centers of urban and rural districts) to value and exchange those medicaments, supplies and/or medical equipment for others to suit the requirements. The exchange must comply with the State�s current regulations on management and use of medicaments, supplies and equipment. It is strictly prohibited to use the medicament-exchange funding for purposes other than humanitarian medical examination and treatment.

2. Humanitarian medical examination and treatment establishments under the Red Cross shall not have to perform obligations towards the State budget regarding the funding sources used for free-of-charge medical examination and treatment activities and shall enjoy the financial incentive regimes prescribed in the Finance Ministry�s Circular No.18/2000/TT-BTC of March 1, 2000 for revenues generated from medical examination and treatment activities.

3. Humanitarian medical examination and treatment establishments under the Red Cross must open accounting books to separately monitor the revenues and expenditures related to medical examination and treatment services with the partial collection of charges, and requested medical examination and treatment.

- After offsetting all operation expenses and fulfill all law-prescribed obligations (if any) towards the State budget, the establishments may deduct part of the amount of differences between hospital fee revenues and expenditures to set up the reward and welfare funds. The remaining amount shall be used to set up fund for development of the cause of medical examination and treatment of the establishments, which shall use the fund to upgrade their material foundations and procure equipment in order to raise the medical examination and treatment quality. The percentages of deduction for setting up funds shall be decided by the heads of the units.

4. Humanitarian medical examination and treatment establishments under the Red Cross must open books to monitor and manage their expenditures and make final settlement reports in strict compliance with the Finance Minister�s Decision No.12/2001/QD-BTC of March 13, 2001 promulgating the accounting regime applicable to non-public units operating in the fields of education, health, culture and sports.

5. Quarterly and annually, the humanitarian medical examination and treatment establishments shall have to report the situation of financial revenues and expenditures to the Red Cross of the same level, submit to the inspection and supervision by the Red Cross and finance agency of the same level.

C. IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days after its signing.

Should any problems arise in the course of implementation, they should be reported to the Finance Ministry for timely amendment.

For the Finance Minister

Vice Minister
NGUYEN CONG NGHIEP